How to write a business plan for your small business

One of the first things that you will need to do as a small business owner is write a business plan. A business plan is crucial for a multitude of reasons. One of the most important reasons that you must have a business plan is that it provides a roadmap which you can use to chart the growth and development of your small business. A business plan also serves as a way to put your business goals into a workable form. Finally, one of the most important functions of a business plan is to help get financing. Three is little chance that you will be able to attract either investors or gain debt financing without having a well written business plan.

There are several important sections of a business plan that need to be included, in order for it to be considered complete. Keep in mind that many times both investors and banks simply toss aside a business plan that does not include all of the necessary information. You need to make sure that you take the time and make the effort to do the necessary research, for your business plan. When you have done the necessary research, you are far more likely to write a business plan, that is not only effective in helping you achieve your business goals, but can also help you gain the financing you need. Here is what you need to know about how to write a business plan for your small business-
- Executive summary-It is important to note that this section of your business plan will show up first in your business plan, however, it is typically written last. You will use this section to summarize all of the important points of your business plan.
- Description of your business-In this section of your business plan (which typically goes second after the executive summary), you will need to be able to describe your company in detail. This will include but is not limited to: the location, the size and the purpose of the business. In addition, you will also want to include some of the goals you have for the business.
- Description of the products or services that you offer-In this section of your business plan, you will want to detail exactly what you are offering to your customers. Keep in mind that you will need to emphasize the value that your products or services provide to your target market.
- Analysis of your market-In this section of your business plan, you should provide an overview (though still detailed) about your market. You want to show why your product or service will fit into the market and then you will need supporting documentation as to why this is so.
- Marketing plan-You may choose to include your complete marketing plan, or simply an overview within your business plan. However, not matter what you do; you should never make the mistake of leaving out your marketing strategy. Your marketing plan, will build onto the analysis of your market. This is the part of the business plan where you will put into writing how you will price, promote and handle the sales of your products or services. Remember, that marketing drives sales, which is the lifeblood of your company, so you need to make sure that your marketing plan is both viable and effective.
- Executive summary-Savvy investors and lenders know that what they are really investing in, are the people who run the company. In this section of your business plan, you will describe the management of the company and why they are experienced to run it.
- Analysis of the business finances-This is the section that you will detail the financing that your small business needs, as well as give the numbers, for your operating expenses.